Well, I guess technically you could not use Olive Oil but it just IS NOT the same. Libya is lush with Olive trees in its mountain regions, especially in towns like Gheryan and Zintan. Olives are collected during the winter months and send to a local press to be squeezed and the essential oil is bottled. Fresh olive oil is bitter, it is aged for months before use.
You will never find a Libyan dish that does not call for it. Its important to use good quality oil. Typically its Extra Virgin Olive Oil that is used. At least in the United States, its generally been found that the brand Pompeian has the best taste.
Olive oil can be pricey. So while quality is important, this ingredient is used heavily so dont break the bank.
Also, do your best to find an olive oil of North African origin in order to get something similar to Libyan olive oil. There is definitely a difference in taste! I have used Tunisian & Moroccan olive oil with good success...but Spanish just doesn't cut it.
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